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Colgate
1. A
Project Study Report
On
COLGATE
Submitted in partial fulfillment for the
Award of degree of
Bachelor of Business Administration(2015-2016)
Faculty of Commerce &Management Studies
Lachoo MemorialCollege of Science and Technology (Autonomous)
Submittedto Submitted by-
Dr.AshishMathur Miss Tanushree Diwaker
Head of Department 134501020
2. Acknowledgement
Every mature individual in professional life is keenly aware of his sense of
ineptness to many people who have stimulated & influenced his intellectual
development. Ordinarily, this feeling is expressed in customary gesture of
acknowledgement. Therefore, it seems as a right to acknowledge my gratitude with
sense of veneration to the Almighty God and various people who helped me during
the course of the project work. Their valuable guidance and wise direction have
enabled me to complete my project in systematic and smooth manner.
I owe gratitude and thankfulness to Prof. Dr. Ashish Mathur, Head of the
Management Wing and I am highly thankful to my guide Miss. Aarti
Khanchandani who took a lot of pain to supervise this project work. Her expert
guidance, advice, suggestions, explicit decision, deep personal interest and
attention had been privilege for me. I have no words to express my heavy debt of
gratitude to her, for encouragement and relevant criticism without which this work
could not have seen this present day.
I owe a special depth of gratitude to my parents, sister and brother for the
motivation, inspiration and support in boosting my morale without which I would
have been in vain.
I would like to convey my heartiest gratitude to all my teachers and friends without
their direct and indirect support it was impossible to accomplish this venture.
3. COMPANY PROFILE
Company name Colgate Palmolive Ltd.
Date of Establishment 1937
Revenue 347.188 (USD in Millions)
Market Cap 111160.5286158 (Rs. In millions)
Corporate Address Colgate Research Centre,
Main Street
Hiranandani Gardens
Powai ,Mumbai-400076,
Maharashtra
WWW.colgate.co.in
Management Details Chair person - J Skala
MD – R D Calmeyer
Directors – Derrick Samuel, J K Setna,Skala,
K V Vaidyaanathan, M Elias,PK
Ghosh, R A Shah, V S Mehta
Business Operation Household &Personal Products
4. Background Colgate-palmolive is Rs 1.300 crore company
started in year 1937. In Rs 2,400 crore
domestic market it enjoys 50% of markets
share. It spread across 4.5 million retails
outlets out of which 1.5 million are direct
outlets.
Financials Total Income – Rs 20606.60 Million (year
Ending Mar 2010)
Net Profit – Rs 4232.60 Million (year
Ending Mar 2010)
Company Secretary K V Vaidyanathan
5. INTRODUCTION
• Colgate – Palmolive Company is an American diversified multinational corporation
focused on the production, distribution and provision of household, healthcare and personal
products, such as soaps, detergents, and oral hygiene products (including toothpaste and
toothbrushes).
• Under its “Hills” brand, it is also a manufacturer of veterinary products. The company’s
corporate offices are on Park Avenue in New York City, across from the Waldrof Astoria.
• In India, it operates under the name as Colgate-Palmolive (India) limited and its head
office is at Mumbai.
• Colgate Palmolive is a $10.6 billion global company serving people in more than 200
countries and territories with consumer products that make lives healthier and more enjoyable.
6. COLGATE PALMOLIVE INDIA:
Headquarter in Mumbai.
Annual Turnover around 1100 crs.
Market leaders in oral care.
Colgate consistently won India no 1 brand of the year award from last three years.
Colgate ranked among best employer in India.
Customer base of more than 8 lacs retailers.
Serviced by company field force, more than 1800 stockiest & super stockiest & their field
force.
Colgate is the brand that people trust, for complete oral care protection for themselves
and ones they lov
COMPANY HISTORY
• 1806 - William Colgate starts a starch, soap and candle business on Dutch Street in New
York City.
• 1817 - First Colgate advertisement appears in a New York newspaper.
• 1820 - Colgate establishes a starch factory in Jersey City, New Jersey.
• 1857 - Upon the death of founder William Colgate, the company is reorganized as
Colgate & Company under the management of Samuel Colgate, his son.
• 1873 - Colgate introduces toothpaste in jars.
7. • 1879 - Gerhard Mennen establishes a pharmacy in Newark, NJ, later becoming the
Mennen Company.
• 1896 - Colgate introduces toothpaste in a collapsible tube.
• 1902 - Stylish Colgate advertising begins, emphasizing ingredient purity and product
benefits.
• 1906 - Colgate & Company celebrates its 100th anniversary. Product line includes over
800 different products.
• 1911 - Colgate distributes two million tubes of toothpaste and toothbrushes to schools,
and provides hygienists to demonstrate tooth brushing.
• 1914 - Colgate establishes its first international subsidiary in Canada.
• 1930 - On March 13, Colgate is first listed on the New York Stock Exchange.
• 1939 - Dr. Mark L. Morris develops a pet food to help save a guide dog named Buddy
from kidney disease. This breakthrough leads to the first Hill's Prescription Diet product.
• 1956 - Colgate opens corporate headquarters at 300 Park Avenue in New York City.
• 1968 - Colgate toothpaste adds MFP Fluoride, clinically proven to reduce cavities.
• 1972 - Colgate acquires Hoyt Laboratories, which later becomes Colgate Oral
Pharmaceuticals.
8. • 1985 - Colgate-Palmolive enters into a joint venture with Hong Kong-based Hawley &
Hazel, a leading oral care company, which adds strength in key Asian markets.
• 1989 - Annual Company sales surpass the $5 billion mark.
• 1995 - Colgate enters Central Europe and Russia, expanding into fast-growing markets.
• 1997 - Colgate Total toothpaste is introduced in the U.S. and quickly becomes the market
leader. Only Colgate Total, with its 12-hour protection, fights a complete range of oral health
problems.
• 2004 - Colgate acquires the GABA oral care business in Europe, with its strength in the
important European pharmacy channel and its ties with the dental community.
• Today …
Today, with sales surpassing $15 billion, Colgate focuses on four core businesses: Oral Care,
Personal Care, Home Care and Pet Nutrition. Colgate now sells its products in over 200
countries and territories worldwide.
9. COLGATE
TOOTHPASTE
Egyptians are believed to have started using a paste to clean their teeth around 5000BC, before
toothbrushes were invented. Ancient Greeks and Romans are known to have used toothpastes,
and people in China and India first used toothpaste around 500BC.
Ancient toothpastes were used to treat some of the same concerns that we have today – keeping
teeth and gums clean, whitening teeth and freshening breath. The ingredients of ancient
toothpastes were however very different and varied. Ingredients used included a powder of ox
hooves' ashes and burnt eggshells, that was combined with pumice. The Greeks and Romans
favored more abrasiveness and their toothpaste ingredients included crushed bones and oyster
shells. The Romans added more flavoring to help with bad breath, as well as powdered charcoal
and bark. The Chinese used a wide variety of substances in toothpastes over time that have
included ginseng, herbal mints and salt.
The development of toothpastes in more modern times started in the 1800s. Early versions
contained soap and in the 1850s chalk was included. Betel nut was included in toothpaste in
England in the 1800s, and in the 1860s a home encyclopedia described a home-made toothpaste
that used ground charcoal.
Prior to the 1850s, 'toothpastes' were usually powders. During the 1850s, a new toothpaste in a
jar called a Crème Dentifrice was developed and in 1873 Colgate started the mass production of
toothpaste in jars. Colgate introduced its toothpaste in a tube similar to modern-day toothpaste
tubes in the 1890s.
Until after 1945, toothpastes contained soap. After that time, soap was replaced by other
ingredients to make the paste into a smooth paste or emulsion - such as sodium lauryl sulphate, a
common ingredient in present-day toothpaste.
10. In the second half of the twentieth century modern toothpastes were developed to help prevent or
treat specific diseases and conditions such as tooth sensitivity. Fluoride toothpastes to help
prevent decay were introduced in 1914. Toothpastes with very low abrasiveness were also
developed and helped prevent the problems caused by overzealous brushing.
The most recent advances in toothpastes have included the development of whitening
toothpastes, and toothpaste containing Triclosan which provides extra protection against caries,
gum disease, plaque, calculus and bad breath.
Toothpastes today typically contain fluoride, coloring, flavoring, sweetener, as well as
ingredients that make the toothpaste a smooth paste, foam and stay moist. Individual toothpastes
also may contain special ingredients, such as triclosan in Colgate Total. Toothpaste in tubes is
used throughout the world and has been a very successful invention.
Colgate (sub-brand of Colgate-Palmolive) is an oral hygiene product line of toothpastes,
toothbrushes, mouthwashes and dental floss. Colgate toothpaste was first sold by the company in
1873, sixteen years after the death of its founder, William Colgate.
Colgate was the first toothpaste in a collapsible tube, introduced in 1896 in New York when it
had previously been sold in glass jars since 1873.
It has been in Singapore since the 1920s. It is in Nepal and India, with manufacturing units based
in India and exported to Nepal.
In 1992, Colgate established its first factory in India to produce toothpaste for the domestic
market, and by 1999 became the highest selling brand in the world.[citation needed] Colgate
products are marketed in China using the transcription 高露洁 which is pronounced gaolujie,
similar to Colgate, and has a positive meaning of high-quality cleaning gel.[citation needed] As
of 2002, Colgate occupied 20% of the market share for toothpastes in China. Present day, this
toothpaste is "one of the thickest known on the market.
11. TOOTHBRUSH
Toothbrushing tools date back to 3500-3000 BC when the Babylonians and the Egyptians made a
brush by fraying the end of a twig. Tombs of the ancient Egyptians have been found containing
toothsticks alongside their owners. Around 1600BC, the Chinese developed "chewing sticks"
which were made from aromatic tree twigs to freshen breath.
The Chinese are believed to have invented the first natural bristle toothbrush made from the
bristles from pigs' necks in the 15th century, with the bristles attached to a bone or bamboo
handle. When it was brought from China to Europe, this design was adapted and often used
softer horsehairs which many Europeans preferred. Other designs in Europe used feathers.
The first toothbrush of a more modern design was made by William Addis in England around
1780 – the handle was carved from cattle bone and the brush portion was still made from swine
bristles. In 1844, the first 3-row bristle brush was designed.
Natural bristles were the only source of bristles until Du Pont invented nylon. The invention of
nylon started the development of the truly modern toothbrush in 1938, and by the 1950s softer
nylon bristles were being made, as people preferred these. The first electric toothbrush was made
in 1939 and the first electric toothbrush in the US was the Broxodent in 1960.
Today, both manual and electric toothbrushes come in many shapes and sizes and are typically
made of plastic molded handles and nylon bristles. The most recent toothbrush models include
handles that are straight, angled, curved, and contoured with grips and soft rubber areas to make
them easier to hold and use. Toothbrush bristles are usually synthetic and range from very soft to
soft in texture, although harder bristle versions are available. Toothbrush heads range from very
small for young children to larger sizes for older children and adults and come in a variety of
shapes such as rectangular, oblong, oval and almost round.
The basic fundamentals have not changed since the times of the Egyptians and Babylonians – a
handle to grip, and a bristle-like feature with which to clean the teeth. Over its long history, the
toothbrush has evolved to become a scientifically designed tool using modern ergonomic designs
and safe and hygienic materials that benefit us all.
12. Colgate-Palmolive (India) Ltd is engaged in the personal care business, which includes oral care.
The oral care products manufactured by the company include toothpastes, toothbrushes,
toothpowder, whitening products and mouthwash. The personal care products manufactured by
the company include body wash, liquid hand wash, shave preps, skin care and hair care. The
household care product manufactured by the company includes surface care. The other products
and treatments provided by the company include gingivitis treatment, sensitivity treatment, tooth
whitening, fluoride therapy, mouth ulcer treatment and specialty cleaning. Colgate-Palmolive
Company is the company's ultimate holding company.
Colgate-Palmolive (India) Ltd was incorporated in the year 1937. In the year 1983, the company
introduced their successful product Colgate Plus toothbrush in the market. In the year 1988,
CPIL received a licence for producing 24,000 tonnes per annum of fatty acids. They also
registered with DGTD for production of 30,000 tonnes of toilet soap per annum. In June 1988,
the company established a wholly owned subsidiary at Hetanda in Nepal to manufacture the
toothpaste and tooth powder initially.
In the year 1991, the company launched new Colgate Gel Toothpaste, Palmolive Extra Care and
new Palmolive soap. They also re-launched a high quality Colgate Plus and other toothbrushes.
In the year 1994, the company acquired the oral hygiene business of Hindustan Ciba-Geigy Ltd.
In the year 1996, the company introduced the Colgate fresh stripe toothpaste and Palmolive
naturals soap in personal care products segments, Keratin Treatment Shampoo and Palmolive
optima in Hair care segment. Also, they established a modern facility at Aurangabad to
manufacture Dicalcium phosphate, a key ingredient for toothpaste. In the year 1998, the
company launched Colgate Double Protection toothpaste for the entire family. They launched the
ad campaign for their new product Colgate Double Protection toothpaste in competition with
rival brand Pepsodent from the Hindustan Lever stable.
In the year 1999, the company launched three new products, such as Colgate Double Protection,
Colgate Total and Colgate Sensation. They started a new research and development centre, a
manufacturing facility in Nepal. Also, they completed a dicalcium phosphate facility in
Aurangabad.
13. In the year 2000, the company introduced two new variants to their Palmolive Naturals soap
range and revitalised their sandalwood soap. Also, they launched two new variants in their
Palmolive Naturals range of beauty soap lime and milk cream. The company re-launched their
Colgate Gel as Colgate Fresh Energy Gel. During the year, the company entered into a strategic
tie-up with Calcutta-based First-net Solutions Ltd for joint sales promotion of Colgate Fresh
Energy Gel toothpaste on the Web portal called www.yantram.com. They made a foray into a
new category of herbal care with the launch of Colgate Herbal touted to be a vehicle for
increasing the company's rural market penetration over a period of time.
During the year 2000-01, the company launched Colgate Herbal Toothpaste, Economy
Toothpaste, Colgate Zig Zag Toothbrush, Colgate Navigator Toothbrush and Transparent Skin
Care Soap in the year market. They came out with a mega promotion, 'Colgate ke andar kya hai',
which was one of the key drivers in strengthening the consumer bond with the Company's oral
care and personal care brands. During the year 2001-02, the company re-launched Colgate Fresh
Energy Gel with a refreshing falvour in a unique first-of-its king transparent tube and economy
toothpaste
During the year 2002-03, the company re-launched their flagship brand, Colgate Dental Cream.
Also, they re-launched their premium toothpaste, Colgate Total, in a green and white striped
paste format. They launched Colgate Navigator Plus toothbrush to deliver excellent cleaning
with a high degree of comfort and control. Also, they re-launched Colgate Super Flexible with
the consumer promise of '3-way action for a comfortable clean'. During the year, the company
divested their entire shareholding in Camelot Investments Company Ltd (Camelot), a wholly
owned subsidiary of the company.
During the year 2003-04, the company launched Colgate Herbal White striped toothpaste with
lemon extracts, eucalyptus and mint. They launched Colgate Navigator Plus Toothbrush in the
market. During the year 2004-05, the company established a state-of-the-art additional toothpaste
manufacturing facility at Baddi, Himachal Pradesh to meet the growing market demand. The first
phase of the facility became operational in April, 2005
During the year 2005-06, the company established Oral Care Category Innovation Centre works
closely with the Technology Centres in India and U.S.A. to shape ideas into products that meet
today's consumer needs. They launched Colgate Advanced Whitening, Colgate Active Salt,
Colgate MaxFresh Gel and Colgate Super Flexible Toothbrush with Unique Tongue Cleaning
14. Feature. During the year 2006-07, Sewri manufacturing facility discontinued its operations with
effect from September 27, 2006.
During the year 2007-08, the company acquired 75% shareholdings in three companies, namely,
Advanced Oral Care Products Pvt Ltd, Professional Oral Care Products Pvt Ltd and SS Oral
Hygiene Products Pvt Ltd and thus they became subsidiaries of the company with effect from
November 1, 2007. In April 2008, the company acquired 75% shareholding in CC Health Care
Products Pvt Ltd at Hyderabad for a total consideration of Rs 1,93.83 lakh. Thus, the company
became a subsidiary company.
During the year 2008-09, the company acquired the remaining 25% shareholding in SS Oral
Hygiene Products Pvt Ltd at a total consideration of Rs 77.70 lakh. Also, as per the scheme of
amalgamation, SS Oral Hygiene Products Pvt Ltd was amalgamated with the company with
effect from March 26, 2009.
During the year 2009-10, the company acquired the remaining 25% shareholdings in
Professional Oral Care Products Pvt Ltd and CC Health Care Products Pvt Ltd at a total
consideration of Rs 2.40 crore and Rs 69.07 lakh respectively. Also, as per the scheme of
amalgamation, Professional Oral Care Products Pvt Ltd and CC Health Care Products Pvt Ltd
were amalgamated with the company with effect from April 1, 2009.
In June 2011, Essel Propack Ltd signed a long-term agreement with the company to set up a
plant in Goa at an investment of Rs 400 million. The company has decided to set up a greenfield
facility at an upcoming industrial estate in Sanand in Gujarat with an estimated investment of Rs
200 crore. The company has been allotted 100,000 sq metres of land at the upcoming GIDC
industrial estate in Bol village in Sanand-II by the Government.
15. COMPANY INFORMATION
COMPANY INFORMATION
VICE CHAIRMAN: R A SHAH
DEPUTY CHAIRMAN: P K GHOSH
DIRECTOR: J K SETNA
DIRECTOR: V S MEHTA
CHAIRMAN: M V DEORAS
WHOLE-TIME DIRECTOR & CS: N GHATE
DIRECTOR: INDU SHAHANI
WHOLE TIME DIRECTOR & CFO: GODFREY NTHUNZI
ADDITIONAL DIRECTOR: SHYAMALA GOPINATH
MANAGING DIRECTOR: I BACHAALANI
CHAIRMAN: VINOD NAMBIAR
AUDITOR: PRICE WATERHOUSE
IND NAME: PERSONAL CARE – MULTINATIONAL
HOUSE NAME: MNC ASSOCIATE
REGISTERED OFFICE
COLGATE RESEARCH CTR MAIN ST., HIRANANDANI GARDENS
POWAI,MUMBAI,MAHARASHTRA-400076
PH : 91-022-67095050
WEBSITE : HTTP://WWW.COLGATEPALMOLIVE.CO.IN
E-MAIL : INVESTOR_GRIEVANCE@COLPAL.COM
16. MARKET GROWTH
FMCG major Colgate-Palmolive India today posted 21.81% increase in net profit at Rs 159.41
crore for the third quarter ended December 31, 2015-16.
The company had reported net profit of Rs 130.86 crore for the October-December period of the
last fiscal.
Its total income from operations during the period under review was up 1.89% at Rs 1,014.85
crore, as against Rs 996.01 crore of the year-ago period, Colgate-Palmolive India said in a filing
to the BSE.
"The organic growth of the company stands 7%, offset by phasing out fiscal benefits in the state
of Himachal Pradesh, to give a reported growth of 2% over the same period of the previous
year," it said.
The unseasonal rains in South India and floods in Chennai city as well as de-stocking in certain
accounts affected shipments for the quarter, it further added.
Colgate-Palmolive has a presence in oral and professional oral care, personal and home care
segments.
The company stock closed at Rs 854.95, down 1.43%, on the BSE.
Colgate-Palmolive posted a 21.1 per cent increase on net profit to Rs 157 crore for the quarter
ended September on Thursday versus Rs 130 crore a year ago. Net sales growth was sluggish
growing 3.8 per cent to Rs 1,032 crore in the quarter versus Rs 994 crore last year.
17. Net sales was sluggish growing 3.84 per cent to Rs 1031.8 crore in the quarter under review
versus Rs 993.57 crore last year.
On outlook, the firm expects the demand trend to be similar to the first half of financial year
2016.
Total standalone income of the company fell by 2 per cent to Rs 1,116.82 crore in the September
quarter from Rs 1,138.27 crore during the same quarter of 2014-15 on account of subdued
industrial sentiment, it added.
Total expenses of the company, which is part of the USD 2.5-billion Kalyani Group, were lower
at Rs 860.67 crore from Rs 879.89 crore during the quarter under review.
18. Is Colgate losing out to
competition?
A weak topline eclipsed the jump in profits of Colgate Palmolive India (Colgate) in the quarter
ended December 2015, which nevertheless was partly due to tax reversal. Core performance was
sub-par with net sales growing just 1.9 per cent year-on-year (y-o-y) to Rs 1,006 crore, below
Bloomberg consensus estimate of Rs 1,038 crore.
Muted toothpaste volumes (up just a per cent in the quarter) were a sore point, and grew at the
slowest pace in the past few quarters. The Chennai floods, unseasonal rains in south India, de-
stocking in some accounts were some factors behind weak volumes. A high base effect in the
December 2014 quarter (volumes grew five per cent) and discontinuation of fiscal benefits in its
Baddi plant in Himachal Pradesh were others. Nevertheless, organic growth (adjusted for
withdrawal of fiscal incentives) was unimpressive at seven per cent.
Rakshit Ranjan, fast moving consumer goods analyst, at Ambit Capital, says Colgate has grown
slower than industry volumes of 2.5 per cent, and believes the slowing topline is a key worry.
Thanks to intensifying competition from peers such as GSK Consumer (Sensodyne), Dabur
(Red) and Patanjali (Dant Kanthi), Colgate has witnessed pressure on its market share.
Colgate said it has gained 60 basis points (bps) volume market share y-o-y in the toothpastes
segment to 57.3 per cent in the January-December 2015 period. However, this has come off from
57.9 per cent in January-June 2015 period, indicating a drop in market share. Whether this
prevails is yet to be seen, but the pressure is increasing. Analysts at Credit Suisse estimate
Colgate's volume growth to remain subdued at four to five per cent over the next couple of years,
with risks of a further slowdown if the Patanjali show is very strong.
19. Against this backdrop, it is surprising that Colgate took a sharp cut of 140 bps y-o-y in
advertising and promotion spends to 15.8 per cent of sales in the December quarter. This,
accompanied with a 319 bps fall in input costs to 25.6 per cent of sales aided Ebitda (earnings
before interest, tax, depreciation and amortization) margin, which expanded 329 bps to 23 per
cent against expectations of 21.6 per cent. A one-time tax reversal led to lower tax rate of 25 per
cent against almost 29 per cent in the year-ago period. Thus, net profit grew 21.7 per cent to Rs
159 crore, higher than the expected Rs 146 crore.
Colgate scrip made a new 52-week low on Wednesday but still trades at a rich 32 times FY17
estimated earnings. Given the volume trend and competitive intensity in toothpastes, sentiments
are likely to remain subdued.
20. Will Colgate repeat history
and emerge as a winner?
The Colgate-Palmolive India (Colgate) scrip has lagged the Sensex over the past year as well as
in the month gone by. In fact, it made a new 52-week low of Rs 791 on Friday, and there are
multiple reasons for this. The first was the news about its parent Colgate-Palmolive undergoing
restructuring and increasing the number of job cuts globally to 3,300-3,800 by December 2017.
This number was earlier 2,700-3,200.
Although analysts believe the job cuts will not apply to India, the news had some impact on
market sentiments. Also, the domestic business has been under pressure. Competition from
Patanjali and Dabur has led to Colgate losing volume share in toothpastes. In the December
quarter, Colgate’s volumes grew one per cent versus the segment’s 2.5 per cent.
Colgate is not new to competition. In fact, it has maintained leadership position in the Indian
toothpastes market for many years now. The company has fought prolonged and costlier battles
with Hindustan Unilever (Pepsodent and Close Up), P&G (Oral-B) and Anchor, and emerged
stronger. This time, too, analysts believe Colgate is better placed.
“Patanjali, like Anchor, lacks a strong innovation culture and currently competes with Colgate
based on a single major product, Dant Kanti (just like Anchor did in 1997). Once competitors
introduce similar products in the herbal-ayurvedic space, Patanjali’s market share gains will be
capped,” says Naveen Kulkarni, analyst at PhillipCapital research.
21. While Colgate's strong execution capabilities and record provide comfort, the company has been
trimming advertising and promotional spends (as a percentage of sales, it has come down from
19.8 per cent in the June 2015 quarter to 15.6 per cent in the December 2015 quarter).
This, along with softening input-cost inflation, has aided healthy margin expansion for Colgate.
Given the company’s focus on premiumisation and better utilisation of expanded capacity,
analysts expect Ebitda (earnings before interest, taxes, depreciation, and amortisation) margins to
expand further by 80 basis points in FY17 over FY16 estimates. The ad spends could inch up as
Colgate defends its market share.
Colgate’s shares trade at 32 times FY17 estimated earnings, lower than its historical average
one-year forward price-to-earnings of 35.5. While the stock seems to capture most negatives, it is
yet to be seen whether history will repeat itself, with Colgate emerging winner again.
22. Colgate-Palmolive hits over
17-month low
Shares of Colgate-Palmolive (India) have hit over 17-month low of Rs 801, down nearly 3% on
the BSE at 11:51 am. The stock is trading at its lowest level since September 17, 2014.
Thus far in 2016, the stock has underperformed the market, by falling 17% as compared to 6%
decline in the S&P BSE Sensex. Post October-December 2015 (Q3FY16) results, the stock is
down 7% against 1.4% fall in the benchmark index.
Colgate’s Q3FY16 revenues grew by a mere 1.9% year on year to Rs 1,006 crore. Impacted by
the toothpaste category slowdown and rising competition, Colgate’s volume growth cracked to
around 1% during the quarter, the lowest recorded by the company in the past 10 years.
With a mere around 1% volume growth in the domestic market, analyst at HDFC Securities is
skeptical about the company’s claim of market share gain.
“We believe the industry will face stiff competition from new entrants, such as Patanjali, which
can have a sizable impact on Colgate, Hindustan Unilever and Dabur’s oral care portfolio,”
analyst said in a results preview.
Analyst at Elara Securities believes the shift of consumer preference towards ethnic/ herbal
toothpastes brings high risk to Colgate’s volume growth rates going forward.
With Patanjali ramping up its distribution in general trade from a mere 5% penetration of this
channel currently, Colgate may face the heat over the coming years, added report.
23. Colgate-Palmolive
opens its first
toothbrush production
unit of India in Sri City
Colgate-Palmolive(India) Limited has inaugurated its first ever toothbrush production unit of
India in Sri City on Wednesday. The plant was set up with an initial capacity to produce 220
million pieces of tooth brushes a year, at an investment of Rs 450 crore.
The company has recently signed an MoU with Andhra Pradesh government to invest an
additional Rs 450 crore for expanding the operations at Sri City, a large private business and
industrial park located near Tamil Nadu borders.
The company proposes to expand the unit for increasing the annual production capacity to 600
million pieces of toothbrushes in future, according to a statement.
"I am happy to inaugurate Colgate's very first toothbrush production unit of India in Sri City. For
the past eight decades Colgate has been serving India with its high quality oral care products.
The strong relationship and the trust of generations of consumers, built over decades of
operations in India, made Colgate as 'most trusted brand' for the past five consecutive years,"
said Fabian T Garcia, chief operating officer, global innovation and growth, Europe/South
Pacific, of Colgate-Palmolive at a function organised at the site.
24. The present unit was commissioned in a building of 16,000 square meter area in 19 months,
which was built in a 25 acre land acquired by the company in Sri City.Colgate-Palmolive (India)
Limited was incorporated in the year 1937 as a fully-owned subsidiary of its US-based parent
company Colgate-Palmolive.
The Indian subsidiary is involved in the production of various kinds of consumer products in the
categories of oral care personal care, household care, surface care and skin care products.
A number of senior company officials and representatives from the state government have
attended the event. Sri City industrial park managing director Ravindranath Sannareddy said they
feel honored to have Colgate-Palmolive's very first toothbrush unit in India at Sri City.
25. Colgate's Core Values
Three fundamental values — Caring, Global Teamwork and Continuous Improvement — are
part of everything we do.
They are the foundation for business strategy and are reflected in every aspect of our work life.
Caring
The Company cares about people: Colgate people, customers, shareholders and business
partners. Colgate is committed to act with compassion, integrity, honesty and high ethics in all
situations, to listen with respect to others and to value differences. The Company is also
committed to protect the global environment, to enhance the communities where Colgate people
live and work, and to be compliant with government laws and regulations.
Global Teamwork
All Colgate people are part of a global team, committed to working together across countries and
throughout the world. Only by sharing ideas, technologies and talents can the Company achieve
and sustain profitable growth.
Continuous Improvement
Colgate is committed to getting better every day in all it does, as individuals and as teams. By
better understanding consumers' and customers' expectations and continuously working to
innovate and improve products, services and processes, Colgate will become the best.
26. Even though we’ve been brushing and flossing our teeth for years and years, many of us are
surprised to learn that we’re not doing it properly. Case in point: Did you know that proper
brushing takes at least two minutes? Most adults do not come close to brushing that long.
These four steps are the best and easiest ways to help you remember how to care for your mouth,
teeth and gums:
Brush at least twice a day with fluoride toothpaste for at least two minutes, especially first thing
in the morning and before bedtime
Floss every day – usually at bedtime
Limit the number of times you eat snacks each day
Visit your dentist every six months for an oral exam and professional cleaning.
How to FLOSS
Pull 18 to 24 inches of dental floss from the floss dispenser.
Wrap the ends of the floss around your index and middle fingers.
Hold the floss tightly around each tooth in a C shape; move the floss back and forth in a push-
pull motion and up and down against the side of each tooth.
27. How to BRUSH
Place the toothbrush at a 45°angle along the gum line. Move the toothbrush in a back and forth
motion, and repeat for each tooth.
Brush the inside surface of each tooth, using the same back and forth technique.
Brush the chewing surface (top) of each tooth.
Use tip of brush to brush behind each tooth — front and back, top and bottom and up and down
strokes.
Be sure to brush your tongue to remove odor-causing bacteria.
SELECTING DENTALPRODUCTS
Tips for Choosing a Toothbrush
With so many shapes, sizes and styles of toothbrushes on the market, deciding which kind to buy
can be confusing.
Here's what you should look for:
Soft-bristles – most dental professionals agree that a soft-bristled brush is best for removing
plaque and debris from your teeth and along the gum line.
28. Comfort is key – pick whatever shape and size is most comfortable for you. The best toothbrush
is one that fits your mouth and allows you to reach all teeth easily.
Powered toothbrushes versus regular brushes – powered toothbrushes are fun and may remove
more plaque than regular toothbrushes. Regular toothbrushes work fine, but powered
toothbrushes make brushing easier.
Tips for Choosing Toothpaste
It can be daunting, so here are some tips:
Children’s toothpaste – when buying toothpaste for your child, look for one that contains
fluoride and has an appealing taste.
Adult toothpaste – when deciding which toothpaste to buy for yourself, or another adult, look at
the benefits. For example, if you are looking to whiten teeth, whitening toothpaste could be a
great option, or of you have sensitivity teeth, then toothpaste formulated for sensitive teeth is a
good idea.
Choosing Mouthwashes and Mouth Rinses
Mouthwash and fluoride mouth rinse are two different products. Here are some of the
differences:
Antibacterial mouthwashes – these mouthwashes are more effective in controlling plaque than
fluoride rinses, and also freshen breath.
Fluoride rinses – these rinses coat the teeth with fluoride to strengthen teeth to prevent tooth
decay and cavities. They also freshen breath.
30. 3. Which Colgate product line are you using now?
A- Colgate Traditional (5)
B- Sensitive (2)
C- Colgate Total (5)
D- Pro-relief (0)
4 . How long have you been using Colgate?
A- 1-2 years (3)
B- 3-6 years (1)
PRODUCT
COLGATE TRADITIONAL
SENSITIVE
COLGATE TOTAL
PRO-RELIEF
TIME
1-2 YEARS
3-6 YEARS
MORE THAN 6 YEARS
31. C- more than 6 years (8)
5. Who is the decision maker for buying toothpaste in your family?
A- Maid (1)
B- Wife (4)
C- Parents (5)
D- Husband (1)
6. Which kinds of toothpaste benefits will entice you to buy?
DECISION MAKER
MAID
WIFE
PARENTS
HUSBAND
33. 7. Why do you use Colgates toothpaste?
A- Good brand image (8)
B- Competitive price (4)
C- Benefits of the toothpaste (6)
D- Promotion (3)
E- Family (4)
USE
GOOD BRAND IMAGE
COMPETITIVE PRICE
BENEFITS OF THE TOOTHPASTE
PROMOTION
FAMILY
34. RESEARCH METHODOLOGY
TYPES OF RESEARCH
Research can be classified from three perspectives:
1. Application of research study
2. Objectives in undertaking the research
3. Inquiry mode employed.
1) Application:
From the point of view of application, there are two broad categories of research:
- Pure research and
- Applied research.
Pure research-:
It involves developing and testing theories and hypotheses that are intellectually
challenging to the researcher but May or may not have practical application at the present time or
in the future. The knowledge produced through pure research is sought in order to add to the
existing body of research methods.
Applied research
It is done to solve specific, practical questions; for policy formulation, administration
and understanding of a phenomenon. It can be exploratory, but is usually descriptive. It is almost
always done on the basis of basic research. Applied research can be carried out by academic or
35. industrial institutions. Often, an academic institution such as a universitywill have a specific applied
research program funded by an industrial partner interested in that program.
2) Objectives:
From the viewpoint of objectives, a research can be classified as
-Descriptive
-Correlation
-Explanatory
-Exploratory
Descriptive research
It attempts to describe systematically a situation, problem, phenomenon, service or
programme, or provides information about , say, living condition of a community, or describes
attitudes towards an issue.
Correlation research
It attempts to discover or establish the existence of a relationship/ interdependence between two
or more aspects of a situation.
Explanatory research
Itattempts to clarify why and how there is a relationship between two or more aspects of
a situation or phenomenon.
36. Exploratory research
It is undertaken to explore an area where little is known or to investigate the
possibilities of undertaking a particular research study (feasibility study / pilot study).
Inquiry Mode:
From the process adopted to find answer to research questions – the two approaches
are:
- Structured approach
- Unstructured approach
Structured approach:
The structured approach to inquiry is usually classified as quantitative research.
Here everything that forms the research process- objectives, design, sample, and the questions
that you plan to ask of respondents- is predetermined. It is more appropriate to determine the
extent of a problem, issue or phenomenon by quantifying the variation.
E.g. how many people have a particular problem? How many people hold a particular attitude?
Unstructured approach:
The unstructured approach to inquiry is usually classified as qualitative research. This approach
allows flexibility in all aspects of the research process. It is more appropriate to explore the
nature of a problem, issue or phenomenon without quantifying it. Main objective is to describe
the variation in a phenomenon, situation or attitude.
e.g., description of an observed situation, the historical enumeration of events, an account of
different opinions different people have about an issue, description of working condition in a
particular industry.
37. Studies you have to combine both qualitative and quantitative approaches.
THE RESEARCH PROCESS
Steps in Research Process:
1. Formulating the Research Problem
2. Extensive Literature Review
3. Developing the objectives
4. Preparing the Research Design including Sample Design
5. Collecting the Data
6. Analysis of Data
7. Generalization and Interpretation
8. Preparation of the Report or Presentation of Results-Formal writes ups of
Conclusions reached.
Step1. Formulating the research problem:
It is the first and most crucial step in the research process. Main function is to decide what you
want to find out about. The way you formulate a problem determines almost every step that
follows.
Research in social sciences revolves around four Ps:
38. • People- a group of individuals
• Problems- examine the existence of certain issues or problems relating to
their lives; to ascertain attitude of a group of people towards an issue
• Programs- to evaluate the effectiveness of an intervention
• Phenomena- to establish the existence of regularity.
Step 2. Reviewing the literature:
Essential preliminary task in order to acquaint yourself with the available body of knowledge in
your area of interest. Literature review is integral part of entire research process and makes
valuable contribution to every operational step. Reviewing literature can be time-consuming,
daunting and frustrating, but is also rewarding. Its functions are:
a. Bring clarity and focus to your research problem;
b. Improve your methodology;
c. Broaden your knowledge;
d. Contextualise your findings.
.
Step 3 The formulation of objectives:
Objectives are the goals you set out to attain in your study. They inform a reader what
you want to attain through the study. It is extremely important to word them clearly and
specifically. Objectives should be listed under two headings:
a) Main objectives (aims);
b) Sub-objectives.
39. • The main objectiveis an overall statement of the thrust of your study. It is also a statement of
the main associations and relationships that you seek to discover or establish.
• The sub-objectivesare the specific aspects of the topic that you want to investigate within the
main framework of your study. They should be numerically listed. Wording should clearly,
completely and specifically communicate to your readers your intention. Each objective should
contain only one aspect of the Study. Use action oriented words or verbs when writing
objectives.
Step 4. PREPARING THE RESEARCH DESIGN
Research design is the conceptual structure within which research would be conducted.
The function of research design is to provide for the collection of relevant information with
minimal expenditure of effort, time and money. The preparation of research design, appropriate
for a particular research problem, involves the consideration of the following:
1. Objectives of the research study.
2. Method of Data Collection to be adopted
3. Source of information—Sample Design
4. Tool for Data collection
5. Data Analysis-- qualitative and quantitative
Step 5: COLLECTING DATA:
Having formulated the research problem, developed a study design, constructed a
research instrument and selected a sample, you then collect the data from which you will draw
inferences and conclusions for your study. Depending upon your plans, you might commence
interviews, mail out a questionnaire, conduct experiments and/or make observations.
40. Collecting data through any of the methods may involve some ethical issues in relation
to the participants and the researcher:
- Those from whom information is collected or those who are studied by a
Researcher becomesparticipants of the study.
- Anyone who collects information for a specific purpose, adhering to the
Accepted code of conduct, is a researcher.
Step 6: PROCESSING AND ANALYSING DATA
Processing and analyzing data involves a number of closely related operations
which are performed with the purpose of summarizing the collected data and organizing these in
a manner that they answer the research questions (objectives).
Step7: REPORTING THE FINDINGS:
Writing the report is the last, and for many, the most difficult step of the research process. The
report informs the world what you have done, what you have discovered and what conclusions
you have drawn from your findings. The report should be written in an academic style. Language
should be formal and not journalistic.
41. SWOT ANALYSIS
“SWOT is an acronym for the internal strength and weakness of a firm and the
environmental opportunities and threats facing the firm.
SWOT analysis is a widely used technique through which managers create a quick
overview of a company’s strategic situation.
The technique is based on the assumptions that an effective strategy derives from a
sound “fit” between a firm’s internal resources (strengths and weakness) and its external
situation (opportunities and threats).
INTERNAL FACTORS:-
(1) STRENGTH:-
Colgate dental cream offers all-round cavity protection, even where a toothbrush cannot
reach.
Its great mint taste freshens breath.
It protects against root caries.
It cleans & makes teeth whiter and repairs early decay spots.
Extremely popular brand and high brand awareness due to advertising.
(2) WEAKNESS:-
42. High dependence of the company on a single category i.e., oral care.
Reduction in advertisement expenditure in order to maintain growth.
EXTERNAL FACTORS
(3) OPPORTUNITIES:-
Leverage on fact that Colgate has been ranked as the most trusted brand in India.
Focus on innovations and new product launches by deploying advanced technologies.
Growth in emerging markets – rural and semi- urban.
(4) THREATS:-
High competition from competitive brands like Pepsodent from HUL.
Increasing commodity prices for manufacturing.
43. STP ANALYSIS
(1) SEGMENTATION :-
Colgate’s market segmentation is very broad because all their products are of need to
most people so those people share a similar interest in product needs.
Colgate uses a segmentation bases by knowing that certain groups of people need
Colgate toothpaste for a specific similar reason like yellow teeth, sensitive teeth or just
teeth with cavities.
Colgate also uses the family life cycle because they make toothpaste that could be used
for grownups and children.
Also, toothbrushes are made to attract young children with cartoon characters and
different tastes and are less strong so that it wouldn’t damage their gums.
(2) TARGET GROUP:-
MAX FRESH :– Colgate targeted youth with the introduction of this toothpaste, as this
helps in refreshes breath.
ACTIVE SALT :- Elder people are targeted in this segment as it makes teeth stronger
and provides protection from cavities.
44. COLGATE TOTAL :- Colgate Total contains the anti-microbial ingredient triclosan,
which reduces the number of bacteria that cause gingivitis, cavities and halitosis
Basically it’s for kids but Mothers are targeted as they are very concerned about their
kids. This toothpaste safeguards teeth for 12 hours.
COLGATE SENSITIVE :- People who have sensitive teeth are targeted in this
segment who have problem in their gums.
KIDS TOOTHPASTE :- Often small children don’t like to brush teeth, so for them
this toothpaste was launched. Colgate had focused on taste aspect to encourage kids to
brush teeth.
COLGATE WHITENNING – A whitening toothpaste that is "Clinically-proven to
whiten in 14 days”. Its whitening ingredient is hydrogen peroxide, which gradually
bleaches the teethFocus is given on group of customers in this segment those who are
already suffering from plaque in their teeth.
COLGATE 2in1 :- People who want both strongness and fresh breath are targeted.
(3) POSITIONING:-
Colgate dental cream positions itself as toothpaste that has the necessary calcium
and minerals to provide decay protection, strong teeth, germ protection and fresher
breath.
Colgate positioned several toothpaste so that people would like the products more
like adding a different style or taste to the toothpaste.
Colgate repositions their products because with the way they market and promote
their products, consumers know that these products are way better than other brands and
competition that is out there.
Lately with competition from indigenous “vegetarian” toothpastes, Colgate dental
cream has also positioned itself as an “always 100% vegetarian” toothpaste. The tagline
of its advertisements, “trusted by generations to make teeth stronger”.
45. Colgate total12 have been projected as the “most advanced toothpaste” that provide
12 hr germ protection even after eating and drinking by building a protective shield
around the teeth.
Colgate max fresh positions itself on the basis of “freshness”. The tagline “new
dimensions brings” home this very point.
Colgate kids toothpaste tries to position itself based on emotions which is apparent in its
tagline “makes fighting cavities fun”
47. 1. Product :-
The product, the Precision toothbrush, is a product that should add
value to a buyer’s life.
It should also add utility, and meet the wants and needs of targeted consumers.
The product should be unique and different from all similar products that are already
available on the market.
The strategy is to differentiate the product’s design and packaging, which in return will
cause the toothbrush to stand out.
VARIOUS TYPES OF COLGATE
2. Price:-
The price of a product says something about the quality.
Even though the quality of the Precision toothbrush will be significantly higher than
other leading toothbrushes, the price of the toothbrush will be determined by the prices
of the other toothbrushes already in the market.
48. This pricing strategy is a result of positioning the toothbrush as a mainstream product
rather than a niche product.
3. Place:-
Place represents the location where a product can be purchased.
The most important part of marketing is how a product will get from the seller to the
buyer.
Many products go through a channel of distribution, which involves manufacturers,
wholesalers, retailers, and consumers.
COLGATE 20gm
s
40gm
s
50gm
s
75gms 80gm
s
100gm
s
150gm
s
200gm
s
300g
ms
Dental
cream
5rs ---- 14rs ---- ---- 30rs 45rs 56rs 86rs
Max fresh --- --- 15rs --- 32rs 35rs 55rs ---- ---
Total ---- ---- --- 35rs --- --- 65rs --- ---
Sensitive --- --- 35rs --- --- 60rs --- --- ---
Kids --- 26rs --- --- --- --- --- --- ---
Advance
whitening
--- --- --- 27rs --- --- 53rs --- ---
Active salt ---- --- 14rs ---- ---- 30rs ---- 54rs ----
Cibaca --- --- --- --- --- 18rs --- 28rs ---
Herbal --- --- 14rs --- --- 30rs --- 55rs ---
Fresh
energy gel
--- ---- ---- ----- --- --- 55rs 60rs ---
49. The distribution strategy proposed for the Precision toothbrush is through dentists,
plastic surgeons, drug stores, grocery stores, large retail stores, and department stores.
The product is available in the all India market, including semi-urban & rural markets
which are their primary focus.
4. Promotion :-
Product promotion is communication spread through advertising, Publicity and sales
promotion.
Promotion represents all of the communication that marketers use in the market.
We suggest that Colgate-Palmolive advertise their products by using commercial,
magazine ads, the radio, ads that are to be placed in dentist offices, billboards, and the
sides of buses.
Advertising is done to promote new products, remind consumers of existing products,
and also promote the image of the company at hand. We also suggested that Colgate
offer special coupons and rebates through their other products, and also food products.
Also, Colgate could benefit from the usage of in-store displays.
Most of the promotional activities would be T.V. media.
T.V., FM radio for urban population.
Promotion towards rural population also.
50. BCG MATRIX
The BCG matrix or also called BCG model relates to marketing. The BCG model is a
well- known portfolio management tool used in product life cycle theory.
BCG matrix is often used to prioritize which products within company product mix get
more funding and attention.
The BCG matrix model is a portfolio planning model developed by Bruce Henderson of
the BOSTON CONSULTING GROUP in the early 1970’s.
The BCG model is based on classification of products (and implicitly also company
business units) into four categories based on combination of market growth and market
share relative to the largest competitor.
51. RECOMMANDATIONS
Colgate should hire celebrities for the advertisement.
They should also increase their CSR activities because they have very good image in the
market.
Target market should be clearly emphasized in the advertisement.
Colgate should emphasize on digital branding i.e., online purchase.
Colgate should use colorful paste to create uniqueness.
52. CONCLUSION
By the Detailed study on the product and market of COLGATE it was able to get a
clear picture of the past and present of the products and was able to get in to the
assumptions about the future of the product.
The Brand “COLGATE” has been sold successfully and has created a good
demand all the time.
It is also holding a good place in the toothpaste market with a share of around
10% - 15%.
As like for all other products Colgate is also facing a tight competition in the
toothpaste Market.
Since the competition is too strong the company has to keep on watching market
closely for avoiding any sudden collapse for the product.
Finally, it should note that the company may have to face lot of threats in
coming years like political threats, legislation threats ongoing economic crisis, changing
life style of the people etc. If the company is able to overcome all the threats and can
prepare themselves for facing the problems in advance it can achieve a good growth for
“COLGATE”.
